LVMH Acquires Majority Stake in Bulgari

LVMH Bulgari

In a deal that was finalized last night, France’s LVMH will acquire the Bulgari family’s majority shareholding in Bulgari S.p.A. LVMH will issue 16.5 million shares in exchange for the 152.5 million Bulgari shares currently held by the Bulgari family, making them the second largest family shareholder of the LVMH Group. The deal is valued at €3.7 billion, or about $5.19 billion.

The offer valued Bulgari’s shares at a 60% premium over its average share price during the past 30 days. The deal will double LVMH’s watch and jewelry business.

Paolo and Nicola Bulgari will remain Chairman and Vice Chairman of Bulgari’s board of directors. The Bulgari family will appoint two new representatives to the LVMH board of directors. Bulgari CEO Francesco Trapani will join the LVMH executive committee and will manage the LVMH watches and jewelry division in the second half of 2011. Current division head Philippe Pascal will remain on the LVMH executive committee in a different capacity.






About Mike Disher

My name is Mike Disher and I am WatchTime's technical editor. My interest in watches dates to 1972 and I caught the internet bug in 1997. In 1999 I combined these interests by joining TimeZone.com as its first full-time employee, and later that year I attended my first Basel Fair. I managed TZ from 2000-2007, and in 2008 I joined WatchTime.

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